“Economic indicators suggest interest rates will be maintained, and for Victoria that’s crucial," O’Neil says. “Any rise would see that flattening of the market become a decline."

Hooker says Sydney prices are 1 per cent higher than the previous year and he expects investor activity to pick up as yields increase.

The agents all say the first-home buyer market is extremely quiet. “The government stimulus from 18 months ago brought forward a lot of people into the market, potentially earlier than anticipated," Hooker says.

“We’re still not seeing a new wave coming."

The agents agree it is too soon to gauge the effect of a carbon tax but that any uncertainty can dampen buyer confidence.